Posts Tagged ‘communications’

I have commented on the main new parts of the new Lending Code in previous blogs here over the past two or three weeks.

Before outlining the code section by section I will show the new numbering that is going to be important to all those using or needing to refer to it. This is more or less the content listing, but important as a a guide – a sort of drop-down menu. For ease (lc) will refer to the new Lending Code and (bc) to the defunct Banking Code.

Introduction: This has been changed to reflect the legal and regulatory changes that affect the code.

Section 2: Communications and financial promotions appears to be a gathering together of these matters, but mainly section 3 (bc).

Section 3: Credit reference agencies At first glance this appears again to be a consolidation of matters more scattered in the (bc), but mainly in section 13.

Section 4: Credit assessment looks new, and certainly is a move to more openness and transparency in bank operation. It may also be a response to criticism of the ‘largesse scattering’ by lenders in the past decade in particular.

Section 5: Current accounts overdrafts This section looks as though it may be new. Again a matter of transparency and clear information about bank methods.

Section 6: Credit cards These have become a gigantic part of the loans market, and so now justify a longer and more detailed section; previously section 10 (bc).

Section 7: Loans appears to be part of the old section 13 (bc).

Section 8: Terms and conditions looks like a new – and short – clarification of how signatories should ensure customers understand the terms and condition surrounding a loan.

Section 9: Financial difficulties Replaces section 14 (bc). There are important additions and changes. I have already given some detail on this in the blog.

Section 10: Complaints replaces section 15 (bc). It is updated of course, in line with the regulatory changes.

Section: 11: Monitoring is more or less the old brief section 16.

Annex A: Summary box for unsecured loans is like a template or guide to code subscribers.

Annex B: Statement of Principles for micro-enterprises I have dealt with at some length already. It also appears to cove the getting help information from section 17 (bc).

I think the Glossary has not been carried over to the new code, but perhaps that can be corrected soon.

Joseph Harris – Debt Control Man

Author: Control Your Debt Crisis on Your Own Terms
http:www.controlyourdebtcrisis.co.uk